At the beginning of each year, we see a recurring pattern in the crypto market, which is an increase in trading volumes, especially on large platforms like Binance. This is not a coincidence, but a known seasonal behavior linked to psychological and financial factors more than being a definitive directional signal.
First - Renewed interest from investors:
At the beginning of a new year, many people return to open charts, review last year's performance, and enter the market with a (new opportunity) mindset. This in itself increases activity even without real changes in fundamentals.
Second - The entry of new liquidity:
Year-end rewards, portfolio rebalancing, or even capital that was sidelined returning to enter with the start of a new cycle. This liquidity increases trading volume but does not necessarily mean that the market is definitely heading upward.
Third - The emergence of new narratives:
The start of the year often brings new stories, predictions, reports, trends, and price targets, etc. This narrative moves the market and trading, but it doesn’t always reflect reality. The market can move strongly just because the narrative or trend is attractive, not because the data has actually changed.
And here is the most important point:
An increase in trading volume (does not mean) a continuous real increase. On the contrary, sometimes an increase in volume is the result of hesitation and conflict between buyers and sellers, or even the liquidation of positions (which I have talked about many times before).
In short:
The market moves in cycles and human behaviors, not just numbers. Those who understand this focus on learning, risk management, and reading the overall context or market conditions and the big picture, instead of chasing every upward movement.
Keep this in mind (learning) before anything else you do in this field and any other field. The rise can be an opportunity, and it can also be a trap. We have seen this behavior frequently over the past years and even in this year.